Contact us
Back to blog

Lower of Zero Rated VAT for Energy Saving Materials: A Boon for Charities

Author Thumbnail

Robert Gould

Partner at Barker | Award-Winning Integrated Property Consultants

There’s welcome news for charities looking to go green. As of 1 February 2024, solar panels for charities now qualify for 0% VAT, a significant reduction that is set to last until 31 March 2027. This announcement also coincides with the introduction of 0% VAT on solar battery systems, providing a substantial financial incentive for charities to invest in sustainable energy solutions. 

Eligibility Criteria for Charities 

To qualify for the reduced VAT, the building in question must be used for charitable purposes and owned by the charity which has a registered charity number. Even if the building is used 95% for charitable purposes, the VAT waiver still applies. This means that leisure centres, church and village halls, which are often rented out but still owned by the charity, can also benefit from this scheme.   

Impact on the Charitable Sector 

This VAT reduction is a game-changer for the charitable sector, enabling organisations to allocate more funds towards their core missions rather than operational costs. By reducing the financial burden associated with installing energy-saving materials, charities can now more easily transition to sustainable energy solutions, thereby reducing their carbon footprint and contributing to broader environmental goals. 

Edwin O’Connell, Head of Energy & Sustainability at Barker, commented on this development: 

“This is fantastic news for the charitable sector. The 0% VAT on solar panels and battery systems provides a significant opportunity for charities to decarbonise their operations. At Barker, we are committed to supporting our clients in their sustainability journeys, and this initiative aligns perfectly with our mission to accelerate decarbonisation in the public sector.” 

The 0% VAT on solar panels and battery systems provides a significant opportunity for charities to decarbonise their operations.


Comprehensive Support from Barker 

Barker, an integrated property consultancy based in the UK, specialises in working with the public sector ad delivering the UKs Net Zero agenda. Our expertise spans a wide range of services, from energy and sustainability consultancy to project management and the redevelopment of entire sites. We are proud to partner with some of the most influential organisations in the public and non-profit sector, and our commitment to sustainability is unwavering. 

If your charity is looking to take advantage of this VAT reduction and invest in energy-efficiency, Barker is here to help. Our team of experts can guide you through the process, ensuring that you maximise the benefits of this initiative. Contact us today to learn more about how we can support your sustainability goals. 

Let's talk

the project